Purchase Solution

Figuring Cost Driver Rates

Not what you're looking for?

Ask Custom Question

2 Questions based the information below:

Rope Company has two departments: Machining and Assembly. The following estimates are for the company yesr:

Machining Assembly
Direct Labor hours 10,000 50,000
Machine hours 40,000 20,000
Support costs 200,000 400,000

1) A single predetermined cost driver rate based on total plant direct labor hours is which of the following based on the above information

$8 per direct labor hour, $10 per direct labor hour, $20 per direct labor hour, or none of these

2) A predetemined cost driver rate for the Machining department based on the number of machine hours in that department is based on the above info

$5 per machine hour, $10 per machine hour, $20 paer machine hour, or none of these

Purchase this Solution

Solution Preview

1) the total plant Support cost is TC = 200,000 + 400,000 = 600,000
While the total plant direct labor hours is
L = Machining Direct Labor hours + Assembly Direct Labor hours = 10,000 ...

Purchase this Solution


Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.